“one level above speculative or “junk” status..”

More details are emerging about Sean Fitzpatrick and the loans he received when chairman of Anglo Irish Bank. RTÉ notes the Irish Times report on the loans from Irish Nationwide while the original report adds this on debt and credit ratings

The new details about Mr FitzPatrick’s loans emerged as Irish Nationwide had its debt rating – an indication of its ability to repay its borrowings – downgraded by two notches to one level above speculative or “junk” status yesterday. A drop to “junk” status would stop many large companies investing in the building society’s bonds.

International credit rating agency Moody’s also reduced Irish Nationwide’s rating to a level representing “modest” financial strength, “potentially requiring some outside support at times”. The agency said the outlook for the building society was “negative”, meaning it may downgrade the lender’s ratings again soon.

Update RTÉ reports that the Chairman of Irish Nationwide, Dr Michael Walsh, has resigned unexpectedly.

, , , ,

  • Greagoir O Frainclin

    Robbers…the lot of them!

    In the old days, people used to rob banks.

    Now banks rob people.

    The bleedin’ robbers.

    String the lot of em’ up!

  • Mack

    Greagoir

    Was it ever any different –

    Andrew Jackson

    Andrew Jackson, the seventh president of the United States, has this to
    say to a delegation of international bankers in 1832:

    “Gentlemen, I have had men watching you for a long time, and I am convinced that you have used the funds of the bank to speculate in the breadstuffs of the country. When you won, you divided the profits amongst you, and when you
    lost, you charged it to the bank. You tell me that if I take the deposits from the bank and annul its charter, I shall ruin ten thousand families. That may be true, gentlemen, but that is your sin! Should I let you go on, you will
    ruin fifty thousand families, and that would be my sin! You are a den of vipers and thieves. I intend to rout you out, and by the eternal God, I will rout you out.”

    Thomas Jefferson

    “If the American people ever allow private banks to control the issue of their money, first by inflation and then by deflation, the banks and corporations that will grow up around them, will deprive the people of their property until their children will wake up homeless on the continent their fathers conquered.”

    Fractional reserve banking allows them to do just that.

  • It was Sammy Mc Nally what done it

    Mack,

    top quotes.

    Has there been detail about the extent of Nationwide’s exposure( %s, ratios etc) to bad debt?

  • Pete Baker

    Update RTÉ reports that the Chairman of Irish Nationwide, Dr Michael Walsh, has resigned unexpectedly.

  • I am not a fan of the large banks. I would prefer to do business with a smaller, local banks. They don’t get preferential treatment from the central banks, so they have to conduct honest business – or go out of business.